The economic potential of establishing a poultry litter handling industry

Rapid increases in poultry litter production in concentrated areas has caused litter to be overapplied to nearby cropland at higher rates than the agronomic requirements of crops. Surface and ground water pollution has resulted due to leaching and runoff of nutrients in the litter. One solution to this litter disposal problem is to move litter from areas of concentrated poultry production (litter-surplus areas) to adjoining areas that have the capacity to absorb more litter for fertilizer and animal feed (litter-deficit areas).

A linear programming feed cost minimization model was used to estimate the value of litter as a feed for beef stockers and beef cows. The value of litter in beef and stocker rations were estimated by determining the value of alternative feeds replaced by litter. The value of litter for use as fertilizer was estimated by determining the value of commercial fertilizer replaced by litter in selected crop rotations. The services and costs required to make litter available for fertilizer and feed were estimated. A linear programming cost minimization model was used to estimate the costs of moving varying amounts of litter from surplus to deficit counties in Virginia for use as fertilizer.

Results indicated that it is economically feasible to establish a poultry litter handling industry. Results indicated more profit potential in moving litter for fertilizer than for feed. The profit potential to a litter handling firm is affected by several factors including the price of commercial fertilizer, waste management requirements, and litter storage subsidies. In order to increase the use of poultry litter for use as fertilizer and feed, it is necessary to educate farmers and the public about the nutritive and economic value of litter as a fertilizer and animal feed.